Let’s Debate the Real Issues

We have watched large corporate interest usurp our government.  We have watched our congress break down to partisan and corporate interest.  We have watched our economy collapsing, and we are butt depth in world conflicts, and neck-deep in debt.  Our educational system is crumbling, our health care delivery systems is third world, and our incomes are shrinking at alarming rates.  What the current politicians are discussing is displacing one party for the next.  I honestly do not see any difference between beltway politicians, Republican or Democrat.  They are all bought and paid for harlots.

We literally are on the verge of losing our democracy to a privileged oligarchy that will continue amassing wealth, and subjugating the rest of us to economic bondage.  These are the issues we should be looking at and not the smoke, mirrors, and BS coming to us through MSM.  This is not the first time our good republic has been assaulted in this manner.  I have talked often about the rhythms of history.  Leading up to D1 was the same collection of characters and actions.  It should surprise no one that the Players of that attempt to capture our representative form of government had names like Morgan, Chase, or Rockefeller.  The game was the same and the plan to capture the flag were the same. President Roosevelt demonstrated the courage and took the actions to break up the “game” by breaking the big banks and financial institutions of the time so they could not continue to control and manipulate the playing field.  These actions restored the opportunity for everyone to have a chance in the game.

It is this simple, if a bank or privately held institution is “too big to fail” it is too big to exist.  It is a danger to our national security more so than any “terrorist” group. Period. The current proposed “financial” regulations are a joke and could quite possibly make things much worse.  George Ure over at www.urbansurvial.com says it best.

Channeling Thomas Jefferson and Theodore Roosevelt, MIT Sloan School of Management Professor Simon Johnson warns in a book being released today that a “new financial oligarchy” threatens not only the nation’s economy, but its political core. In 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (Pantheon), Johnson, a professor of entrepreneurship and management, says the book provides “the back story” for the 2008 financial crisis “and for all the issues being raised now around financial reform. We hope the book helps people have a badly needed conversation about what we must do to push back against dangerous, narrow interest groups that now threaten our economic well-being.”

“That thought should frighten us into action.” In 13 Bankers, Johnson, a former chief economist for the International Monetary Fund, and co-author James Kwak cite historical precedents and offer financial analysis to conclude that a second financial shock is inevitable unless the financial and political stranglehold held on Washington by the nation’s biggest banks is broken. “The best defense against a massive financial crisis is a popular consensus that too big to fail is too big to exist,” the authors write. “This is at its heart a question of politics, not of economics or of regulatory technicalities.”

The book points out that the current concentration of financial and political power is not unlike other moments in American history. President Theodore Roosevelt, for example, challenged the monopoly powers of banker and industrialist J.P. Morgan. “No one thought he could win,” Johnson says in an interview, “but he did succeed in the first prosecution of a corporation under the Sherman Antitrust Act.” Roosevelt, he said, began a process that helped people understand the need to reign in the power of corporate giants, such as John D. Rockefeller’s Standard Oil, “which was arguably more important as a single company in 1910 than J.P. Morgan was then or J.P. Morgan Chase is now,” says Johnson.

Similar leadership is needed from the Obama administration and Congress now, according to 13 Bankers, which concludes that regulatory changes and other responses to date have been vastly inadequate. Johnson supports the administration’s proposed consumer protection measures, but overall, “You can’t just tweak a few rules and expect to rein in these big institutions.” Instead, the book calls for the six biggest banks to be broken up and for hard limits to be imposed so that banks cannot rebuild themselves into political and financial powerhouses. “Saying that we cannot break up our largest banks is saying that our economic futures depend on these six companies,” notes 13 Bankers. “That thought should frighten us into action.”

What we need right now is to not let this situation deteriorate in some “false flag” revolution movement, which would only play into the hands of the people who think they now have control.  This would only allow them to put into place the paramilitary police force they have invested so heavily in to control us even further.  If you are a member of militia or similar organizations, I want you to think hard about fighting against a new world order or Anti-Christ and understand you will  only facilitate the very thing you fear.  Simply put you are out-gunned and out financed.  You will only validate the need for draconian control of us all and take away the final freedom we have.  That is the freedom to go to the ballot box and throw these bums out.

What we need now is to really send a message in this upcoming mid-term election that this isn’t about Republicans versus Democrats, Liberals versus Conservatives, Socialist versus Facists, this is about tearing down an oligarchy.  We should be forming the American Party.  A party whose platform is based on restoring opportunity to all Americans. A party who will eliminate the need and opportunity for money to control the elective process by adopting a publicly financed  campaign law.  A party  that will legislate real banking reform and trading reforms by breaking up the big banks while we still own them and eliminating derivatives and other sleazy financial instruments that bet on things going down. A party that will insure that big pharma and corporate medical delivery systems are subject to rate and profit controls like any other vital utility in our society.  In each of the next three or four elections we could undo a lot of damage.  It starts with that kind of resolve.  It is followed through by vigorous prosecution of criminals, and ends when we all believe again and have restored our constitutional rights.  These are the issues and this is our challenge.  I welcome any dialogue on these real issues.  Anyone?

Short Bulletin..This is Important to Understand

Two days ago in my article about the Fox in The Henhouse, I presented the material concerning how the PTB were manipulating the Gold and Silver markets.  Within that article, I presented the material that was presented to the CFTC concerning whistle-blower and London trader Andrew Maguire and his various emails to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, warning that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

I want to put into perspective the reality of how important this information was in context to the amount of wealth that is at stake and how that wealth is being taken from all of us.  I do run the risk of retaliation, but I am hoping that so few people read my blog it would not gather that much notice, but there are my readers and their interest I value.  Currently 165 central banks in the world, that are all privately held by the Rothschild family, are collecting massive amounts of gold and they are manipulating the market to get it.  Last year alone they bought up nearly 450 metric tons of gold and now hold nearly 32,000 metric tons of gold valued at nearly $1 trillion dollars.  Put another way, they now possess 18% of all the gold ever mined in the world.

This must be a very sensitive issue because London metals trader Andrew Maguire, who warned an investigator for the U.S. Commodity Futures Trading Commission in advance about a gold and silver market manipulation to be undertaken by traders for JP Morgan Chase in February and whose whistleblowing was publicized by GATA at the CFTC hearing on metals futures trading was injured along with his wife the next day when their car was struck by a hit-and-run driver in the London area. According to GATA’s contact with Maguire, board member Adrian Douglas, Maguire and his wife were admitted to a hospital overnight and released today(March 28) and are expected to recover fully. Maguire told Douglas by telephone today that his car was struck by a car careening out of a side road. When a pedestrian who witnessed the crash tried to block the other driver’s escape, the other driver accelerated at the pedestrian, causing him to jump out of the way to avoid being hit. The other driver’s car then struck two other cars in escaping. But the other driver was caught by police after a chase in which police helicopters were summoned.

And you wonder why I call them banksters!

Singularity and the Event Horizon in the Financial Crisis

Singularity is defined as:

1. the state, fact, or quality of being singular
2. something distinguishing a person or thing from others
3. something remarkable or unusual
An event horizon is defined as:
the surface of a black hole : the boundary of a black hole beyond which nothing can escape from within it.
There is nothing in the entire universe that does not start with a single event or a single person’s actions. Nothing.  As I pondered that thought the other evening, I brought it to bear in context of the current global economic crisis. We tend to think of these things as a group of actions that precipitate the events.  However, when you consider that credit derivatives (CDS) seem to be the weapon of mass destruction, the first question that comes to mind is where did CDS’ come from in the first place.
First, there is no doubt that CDS’ are the culprit.  Consider these statements from some of the world’s leading experts in the matter:
  • A Nobel prize-winning economist (George Akerlof) predicted in 1993 that CDS would cause the next meltdown
  • Warren Buffett called them “weapons of mass destruction” in 2003
  • Warren Buffett’s sidekick Charles T. Munger, has called the CDS prohibition the best solution, and said “it isn’t as though the economic world didn’t function quite well without it, and it isn’t as though what has happened has been so wonderfully desirable that we should logically want more of it”
  • Former Federal Reserve Chairman Alan Greenspan – after being one of their biggest cheerleaders – now says CDS are dangerous
  • Former SEC chairman Christopher Cox said “The virtually unregulated over-the-counter market in credit-default swaps has played a significant role in the credit crisis”
  • Newsweek called CDS “The Monster that Ate Wall Street”
  • President Obama said in a June 17,2009 speech on his plans for finance industry regulatory reform that credit swaps and other derivatives “have threatened the entire financial system”
  • George Soros says the market is still unsafe, and that credit- default swaps are “toxic” and “a very dangerous derivative” because it’s easier and potentially more profitable for investors to bet against companies using them than through so-called short sales.
  • U.S. Congresswoman Maxine Waters introduced a bill in July that tried to ban credit-default swaps because she said they permitted speculation responsible for bringing the financial system to its knees.
  • Nobel prize-winning economist Myron Scholes – who developed much of the pricing structure used in CDS – said that over-the-counter CDS are so dangerous that they should be “blown up or burned”, and we should start fresh
  • A leading credit default swap expert (Satyajit Das) says that the new credit default swap regulations not only won’t help stabilize the economy, they might actually help to destabilize it.
  • Senator Cantwell says that the new derivatives legislation is weaker than current regulation
So who “invented” the CDS?  Meet the Mistress of Destruction:  Blythe Masters

Blythe Masters is Managing Director and Chief Financial Officer ( look surprised!) of J.P. Morgan Investment Bank. Previously, she was a Managing Director and Head of the firm’s Global Credit Portfolio and Credit Policy and Strategy Groups. In that role, her responsibilities included the proactive management of credit and market risks of the bank’s retained credit positions arising from lending and derivatives activities, as well as developing credit strategy, policies and limits to measure and control credit risk and coordinate the financial and risk reporting of the firm’s credit activities. Masters served as 2003 Chair of the Corporate Credit Markets Division and is Co-Chair of the International Swaps and Derivatives Association’s Credit Derivatives Market Practices Committee. She received a B.A. in economics, with honors, from Trinity College in Cambridge, England.

Masters, who hails from the same clod of soil as Harriet Harman, is apparently an even greater monster, having been the creatrix of Credit Default Swaps. Blythe Masters learned how to sew body parts together at Cambridge University, and got her lab, electricity supply and a hunchbacked personal assistant named Igor from those great humanitarians at JP Morgan. Masters was also once quoted as saying that her fiduciary nonesuch was the equivalent of “a free lunch”, something which of course, unless you are a food critic, simply doesn’t exist.

A trader and a manager of global credit derivatives and structured products business. The head of Global Credit Portfolio and Credit Policy and Strategy. And just prior to that position, the Chief Financial Officer of JP Morgan’s Investment Bank. Her CDS scheme has made JP Morgan not billions, but trillions of dollars. $4 trillion to be precise.

This is the single person responsible for bringing down governments, crashing economies, bringing untold hardships to hundreds of millions of people.  Quite frankly, historically given the amount of devastation she has caused in the world, she should be right up there with Hitler, Stalin, Rasputin, Saddam, and others.  When you look at the cost of the damage in real dollars, the devastation of World War Two pales in comparison.

However, I bring this to light not to rail on Mistress Masters as one might think.  I point it out to illustrate the power of a single individual in our reality.  Although this certainly is indictment as to how destructive one individual’s thought and intellectual creation can be, it also points out the power we all have.  The potential to affect the entire world and civilization as we know it.  WE ARE VERY POWERFUL, all of us.  The question is:  Where is our Blythe Masters in the “white hat” to counter the forces of greed and hubris? It is hard to believe and I won’t accept the fact that not one politician, one world leader, or one financial mogul will step up and end CDS’. Not one in the whole world.  I know you are out there and you want to do the right thing.  DO IT. STEP UP. If nothing else Blythe Masters proves it can be done.  One person can change everything.

More on the Fox’s Activities in the Henhouse

I have written several times in this series of blogs concerning how the PTB are using their armies of financial capabilities to attack and break the backs of sovereign economies, manipulate the markets, and basically create a situation that will force one world government, one currency, and one controlling para-military police force.

I have in, all cases, tried to present just facts, not conjecture or conspiracy theories.  I have stated often that the weapons of choice in this battle on the global economic front have been derivatives instrument, repo instruments and shorts (see posts of 3/17, 3/08, and many earlier posts).  What is happening here is nothing short of criminal.  However, because the PTB control the regulatory agencies as well, nothing is being done at all.  In fact, these financial armies act with impunity.   I have been following this closely, mostly because the market is being artificial propped and gold and silver prices have been obviously and grossly manipulated.  The effects of those manipulations have caused severe loses by honest traders, prevented any possibility of recovery, and been very effective in attacking sovereign wealth funds.

Below, in it’s entirety is an exact roadmap and verification that this is real.

Earlier this week  the CFTC(Commodity Futures Trading Commission) held a sham hearing in which, among other things, the organization discussed position limits in PM speculation, because they stated, “it’s the mom and pop speculators that destroy the precious metal market” (not JP Morgan or the New York Fed mind you).  You must understand that the CTFC role is an independent agency with the mandate to regulate commodity futures and option markets in the United States. The agency’s mandate has been renewed and expanded several times since then, most recently by the Commodity Futures Modernization Act of 2000.

In 1974 the majority of futures trading took place in the agricultural sector. The CFTC’s history demonstrates, among other things, how the futures industry has become increasingly varied over time and today encompasses a vast array of highly complex financial futures contracts.

Today, the CFTC is supposed to assure the economic utility of the futures markets by encouraging their competitiveness and efficiency, protecting market participants against fraud, manipulation, and abusive trading practices, and by ensuring the financial integrity of the clearing process. Through effective oversight, the CFTC is supposed to enable the futures markets to serve the important function of providing a means for price discovery and offsetting price risk.

The CFTC’s mission is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.

The hearing  last week could not have come at a more opportune time. GATA has just broken a major story, in which a London metals trader-slash-whistleblower exposes JP Morgan’s silver price suppression/manipulation scheme. At this point none of this should be at all shocking, and the only thing that matters is when CFTC’s ex-Goldmanite Gary Gensler will be fired for allowing hundreds of billions of dollars to be sucked out of the PM market on behalf of such major market manipulating entities as JP Morgan and the New York Federal Reserve, for whom it transacts. Don’t worry – the answer to that rhetorical question is “never”, as it is the administration’s goal to make all the millionaires among the bulge bracket firms billionaires, via legalized theft from honest investors. Furthermore, if indeed the CFTC is complicit in these manipulative events, as GATA suggest, we hope our objective mainstream media readers enjoin GATA in seeking justice for this criminal breach of proper regulatory enforcement.

From GATA:

Additional Statement by Bill Murphy, Chairman
Gold Anti-Trust Action Committee to the U.S. Commodity Futures Trading Commission
Washington, D.C., March 25, 2010

On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.

In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.

On February 3 Maguire gave two days’ warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

It would not be possible to predict such a market move unless the market was manipulated.

In an e-mail on February 5 Maguire wrote: “It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.”

Expiry of the COMEX April call options was yesterday, March 26. There was large open interest in strikes from $1,100 to $1,150 in gold. As it always happens month after month, HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted by GATA, the manipulation started on March 19, when gold was trading at $1,126. Last night it traded at $1,085.

This is how much the gold cartel fears the CFTC’s enforcement division. They thumb their noses at you because in more than a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM’s cocky and arrogant traders in London are able to brag that they manipulate the market.

This is an outrage and we are making available to the press the e-mails from Maguire wherein he warns of a manipulative event.

Additionally Maguire informed us that he has tape recordings of his telephone communications with the CFTC, which we are taking the appropriate legal steps to acquire.

* * *

From: Andrew Maguire
Sent: Tuesday, January 26, 2010 12:51 PM
To: Ramirez, Eliud [CFTC]
Cc: Chilton, Bart [CFTC]
Subject: Silver today

Dear Mr. Ramirez:

I thought you might be interested in looking into the silver trading today. It was a good example of how a single seller, when they hold such a concentrated position in the very small silver market, can instigate a selloff at will.

These events trade to a regular pattern and we see orchestrated selling occur 100% of the time at options expiry, contract rollover, non-farm payrolls (no matter if the news is bullish or bearish), and in a lesser way at the daily silver fix. I have attached a small presentation to illustrate some of these events. I have included gold, as the same traders to a lesser extent hold a controlling position there too.

Please ignore the last few slides as they were part of a training session I was holding for new traders.

I brought to your attention during our meeting how we traders look for the “signals” they (JPMorgan) send just prior to a big move. I saw the first signals early in Asia in thin volume. As traders we profited from this information but that is not the point as I do not like to operate in a rigged market and what is in reality a crime in progress.

As an example, if you look at the trades just before the pit open today you will see around 1,500 contracts sell all at once where the bids were tiny by comparison in the fives and tens. This has the immediate effect of gaining $2,500 per contract on the short positions against the long holders, who lost that in moments and likely were stopped out. Perhaps look for yourselves into who was behind the trades at that time and note that within that 10-minute period 2,800 contracts hit all the bids to overcome them. This is hardly how a normal trader gets the best price when selling a commodity. Note silver instigated a rapid move lower in both precious metals.

This kind of trading can occur only when a market is being controlled by a single trading entity.

I have a lot of captured data illustrating just about every price takedown since JPMorgan took over the Bear Stearns short silver position.

I am sure you are in a better position to look into the exact details.

It is my wish just to bring more information to your attention to assist you in putting a stop to this criminal activity.

Kind regards,
Andrew Maguire

* * *

From: Ramirez, Eliud [CFTC]
To: Andrew Maguire
Sent: Wednesday, January 27, 2010 4:04 PM
Subject: RE: Silver today

Mr. Maguire,

Thank you for this communication, and for taking the time to furnish the slides.

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]
Sent: Wednesday, February 03, 2010 3:18 PM
Subject: Re: Silver today

Dear Mr. Ramirez,

Thanks for your response.

Thought it may be helpful to your investigation if I gave you the heads up for a manipulative event signaled for Friday, 5th Feb. The non-farm payrolls number will be announced at 8.30 ET. There will be one of two scenarios occurring, and both will result in silver (and gold) being taken down with a wave of short selling designed to take out obvious support levels and trip stops below. While I will no doubt be able to profit from this upcoming trade, it is an example of just how easy it is to manipulate a market if a concentrated position is allowed by a very small group of traders.

I sent you a slide of a couple of past examples of just how this will play out.

Scenario 1. The news is bad (employment is worse). This will have a bullish effect on gold and silver as the U.S. dollar weakens and the precious metals draw bids, spiking them higher. This will be sold into within a very short time (1-5 mins) with thousands of new short contracts being added, overcoming any new bids and spiking the precious metals down hard, targeting key technical support levels.

Scenario 2. The news is good (employment is better than expected). This will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered, again targeting key support levels.

Both scenarios will spell an attempt by the two main short holders to illegally drive the market down and reap very large profits. Locals such as myself will be “invited” on board, which will further add downward pressure.

The question I would expect you might ask is: Who is behind the sudden selling and is it the entity/entities holding a concentrated position? How is it possible for me to know what will occur days before it will happen?

Only if a market is manipulated could this possibly occur.

I would ask you watch the “market depth” live as this event occurs and tag who instigates the move. This would surly help you to pose questions to the parties involved.

This kind of “not-for-profit selling” will end badly and risks the integrity of the COMEX and OTC markets.

I am aware that physical buyers in large size are awaiting this event to scoop up as much “discounted” gold and silver as possible. These are sophisticated entities, mainly foreign, who know how to play the short sellers and turn this paper gold into real delivered physical.

Given that the OTC market (where a lot of the selling occurs) runs on a fractional reserve basis and is not backed up by 1-1 physical gold, this leveraged short selling, where ownership of each ounce of gold has multi claims, poses a very large risk.

I leave this with you, but if you need anything from me that might help you in your investigation I would be pleased to help.

Kind regards,
Andrew T. Maguire

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Sent: Friday, February 05, 2010 2:11 PM
Subject: Fw: Silver today

If you get this in a timely manner, with silver at 15.330 post data, I would suggest you look at who is adding short contracts in the silver contract while gold still rises after NFP data. It is undoubtedly the concentrated short who has “walked silver down” since Wednesday, putting large blocks in the way of bids. This is clear manipulation as the long holders who have been liquidated are matched by new short selling as open interest is rising during the decline.

There should be no reason for this to be occurring other than controlling silver’s rise. There is an intent to drive silver through the 15 level stops before buying them back after flushing out the long holders.

Regards,
Andrew

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]; GGensler [CFTC]
Sent: Friday, February 05, 2010 3:37 PM
Subject: Fw: Silver today

A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? I have honored my commitment not to publicize our discussions.

I hope you took note of how and who added the short sales (I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.

It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.

Bart, you made reference to it at the energy meeting. Even if the level is in dispute, what is not disputed is that it exists. Surely some discussions should have taken place between the parties by now. Obviously they feel they can act with impunity.

If I can compile the data, then the CFTC should be able to too.

I would think this is an embarrassment to you as regulators.

Hoping to get your acknowledgement.

Kind regards,
Andrew T. Maguire

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Sent: Friday, February 05, 2010 7:47 PM
Subject: Fw: Silver today

Just logging off here in London. Final note.

Now that gold is undergoing short covering, please look at market depth right now in silver and evidence the large selling blocks in a thin market being put in the way of silver regaining the technical 15 level, which would cause a short covering rally and new longs being instigated. This is resulting in the gold-silver ratio being stretched to ridiculous levels.

I hope this day has given you an example of how silver is “managed” and gives you something more to work with.

If this was long manipulation in, say, the energy market, the shoe would be on the other foot, I suspect.

Have a good weekend.

Andrew

* * *

From: Andrew Maguire
Sent: Tuesday, February 09, 2010 8:24 AM
To: Ramirez, Eliud [CFTC]
Cc: Gensler, Gary; Chilton, Bart [CFTC]
Subject: Fw: Silver today

Dear Mr. Ramirez,

I hadn’t received any acknowledgement from you regarding the series of e-mails sent by me last week warning you of the planned market manipulation that would occur in silver and gold a full two days prior to the non-farm payrolls data release.

My objective was to give you something in advance to watch, log, and follow up in your market manipulation investigation.

You will note that the huge footprints left by the two concentrated large shorts were obvious and easily identifiable. You have the data.

The signals I identified ahead of the intended short selling event were clear.

The “live” action I sent you 41 minutes after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined.

Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading.

All you have to do is identify the large seller and if it is the concentrated short shown in the bank participation report, bring them to task for market manipulation.

I have honored my commitment to assist you and keep any information we discuss private,however if you are going to ignore my information I will deem that commitment to have expired.

All I ask is that you acknowledge receipt of my information. The rest I leave in your good hands.

Respectfully yours,

Andrew T. Maguire

* * *

From: Ramirez, Eliud
To: Andrew Maguire
Sent: Tuesday, February 09, 2010 1:29 PM
Subject: RE: Silver today

Good afternoon, Mr. Maguire,

I have received and reviewed your email communications. Thank you so very much for your observations.

The conclusion of this testimony and evidence by Bill Murphy was he was thanked and the CTFC moved to the next agenda item without comment.  Further the entire segment was blanked from the publicly aired hearings!  You can see it here though: http://www.youtube.com/watch?v=e9bU0r6JP4s&feature=player_embedded

If we as the general public come to realize that although this seems to just involve traders and investors, it in fact involves us all and we let our CONgress know we know and we demand that criminal investigations and indictments should begin immediately,  then we may still have chance to stop this obvious affront to our basic freedoms.  It is making this link that is important for us all to understand.  The people of Argentina understand.  The people of Ireland understand.  The people of Iceland understand.  The people of Greece understand.  However, sadly, they understand AFTER the fact.  We still have the opportunity to understand before the final assault on our economy is complete.  Will we is the question, will we?

History Really Does Have Rhythm..D1 and D2 Dancing Together

It has often been remarked that events in history repeat themselves even across thousands of years.  Wars, famines, dictators, and economic cycles, especially economic cycles, all seem to have identical patterns in the manner they unfold.  It is certainly true when you compare D1 to our current depression D2.  I have written several articles concerning this and this is just one more in that series to journal the unfolding of events.  I have spoken often about my concern that the “second shoe” has not really dropped.  That “shoe” is the collapse of the commercial real estate market.  I worry because of a number of reasons.  First the size of the “nut” is much larger than home mortgages, but more importantly it is the downward spiral effect that occurs when the commercial real estate market deflates.

When someone loses their home because they lost their job, one family is impacted.  However, when a commercial site goes down, many families lose their income and homes, contractors and vendors suffer, and that affects the entire economy in a much more profound manner.  During D1, after the market crashed, many people lost their jobs and homes, and that’s when a mortgage was only $2,000.  Then the happy talk started, just like now that things were “showing signs of recovery”.  By 1933, everyone was talking that D1 was about over.  Then the commercial portfolios carried by the banks began to default in record numbers.  There really was no way that banks could cover those loses.  By that time people had little or no faith in the banking institutions of the time and they began to “run” the banks to get their money out.  President Roosevelt declared a “banking holiday” and well the rest is history.

The parallels to the events unfolding right before our eyes is very much in rhythm with those events.  When you read that foreclosure filings fell 10% in January from December, don’t get too excited. According to Realty Trac, foreclosures are 15% higher than they were a year ago and there’s likely to be an increase in foreclosure activity in the next few months, as the government’s crappy mortgage modification program continues to fail. So are things getting better?

Now look at the commercial portfolios. James J. Saccacio, CEO of RealtyTrac noted that “if history repeats itself we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs or the new short sale and deed-in-lieu of foreclosure alternatives works.” In other words, another storm is a-brewing in the market. The continued reluctance of banks to tackle the foreclosure problem is astounding. There’s near-universal agreement that principal reduction is the key, but we are left with lame programs, like this one announced yesterday by CitiMortgage. The so-called “strategic non-foreclosure” continues the “extend and pretend” policy that bank lenders have pursued over the past year. From the banks’ point of view, the longer they keep you on the hook, the better it is for them. Avoiding the mess of foreclosure allows them to keep the fictitious valuations on their books and in this new Citi program, ensures that some of the costs of carrying the dud loan get transferred to the borrower, who in all likelihood, will end up defaulting. Some experts believe that a new round of foreclosures could trigger a double-dip in housing prices.

A new report from the Congressional Oversight Panel (that’s Elizabeth Warren & Co, the TARP watchdogs) about the looming storm in the commercial real estate market. The report predicts a wave of losses, totaling $200-$300 billion, from commercial real estate loans could “trigger economic damage that could touch the lives of nearly every American.”

A snapshot of Dallas Fort Worth gives you an example how the commercial crash of D2 has started. Commercial property foreclosure filings in the Dallas-Fort Worth area top $1 billion (that’s one area for one month!) for the upcoming April sales. That’s much higher than commercial foreclosure posting totals in recent months. “It’s certainly the highest we’ve seen in this cycle,” George Roddy of Foreclosure Listing Service said Monday. The Addison-based foreclosure-tracking firm counts 333 D-FW commercial properties scheduled for auction by lenders next month.

During the last few months, the auction totals have averaged about 250. Among the properties set for sale next month are the Element Hotel in Irving, with $13.1 million in debt, and the Firewheel Distribution Center in Garland, with $13.1 million in debt, according to Foreclosure Listing Service. Part of Allen’s Star Creek development on State Highway 121, with about $15 million in debt, also made the April foreclosure list. The biggest current foreclosure posting is still the Four Seasons Resort and Club at Las Colinas, with $183 million.

Although the 400-acre resort has been facing auction for several months, owner BentleyForbes and its lenders have reached a “standstill agreement” while debt negotiations continue. BentleyForbes officials said earlier this month that they “expect that a resolution will be reached in the near future.” But it’s not unusual for a mortgage holder to continue posting a property for foreclosure while talks go on. Not all properties listed for foreclosure each month are actually sold by the lender. Many times, the borrower reaches a new mortgage agreement or delays the forced sale.

As I see it, the PTB cannot “prop” this up much longer.  They have been able to keep the stock market in a false positive because they own the central bank printing the money.  In fact, they privately hold 165 central banks globally.  However, at the rate things are still spiraling downward, they can’t print money fast enough.  They were trying to create hyperinflation, they have failed.  We are still very much in a deflationary curve and no one wins in that mode, not even the PTB.  They have been focusing on bringing sovereign economies down and they failed to factor what is really happening.  Are they really that stupid? No.  Simply, they didn’t do well in history class.

It’s a Sad Day in Blackrock

The assault on sovereign treasuries continues. It is painful to watch.  As the Chinese story of torture goes, it is a death by 1,000 cuts. The benchmark of world economies, The United States of America, being brought down by debt and bankers.  It is not only the US, but all of the G7 countries except currently Canada. This report appeared in Bloomberg today just continues to confirm my worst fears; the banksters are winning and are right on schedule.

March 22 (Bloomberg) — The bond market is saying that it’s safer to lend to Warren Buffett than the United States of America. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. Debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market.

The $2.59 trillion of Treasury Department sales since the start of 2009 have created a glut as the budget deficit swelled to a post-World War II-record 10 percent of the economy and raised concerns whether the U.S. deserves its AAA credit rating. The increased borrowing may also undermine the first-quarter rally in Treasuries as the economy improves.

“It’s a slap upside the head of the government,” said Mitchell Stapley, the chief fixed-income officer in Grand Rapids, Michigan, at Fifth Third Asset Management, which oversees $22 billion. “It could be the moment where hopefully you realize that risk is beginning to creep into your credit profile and the costs associated with that can be pretty scary.”

While Treasuries backed by the full faith and credit of the government typically yield less than corporate debt, the relationship has flipped as Moody’s Investors Service predicts the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K. America will use about 7 percent of taxes for debt payments in 2010 and almost 11 percent in 2013, moving “substantially” closer to losing its AAA rating, Moody’s said last week.

All G7 countries, except Canada and Germany, will have debt-to-GDP ratios close to or exceeding 100 percent by 2014, Lipsky said in a speech yesterday at the China Development Forum in Beijing. Already this year, the average ratio in advanced economies is expected to reach the levels seen in 1950, after World War II, he said.

As of today, the US debt-to-GDP ratio is over 88%.  I have written recently on several occasions concerning this worry.  At our current rate we will exceed a 100% ratio by the end of 2010, maybe even earlier than the end of the fiscal year.

“It’s a manifestation of this avalanche, this growth in U.S. Treasury supply which is under way and continues for the foreseeable future, and the comparative scarcity of high-quality credit, particularly in shorter-maturity debt”, said Malvey, whose Lehman team was ranked No. 1 in fixed-income strategy by Institutional Investor magazine from 1998 through 2007.

Last year’s $2.1 trillion in borrowing by the government exceeded the $1.08 trillion issued by investment-grade companies, the biggest gap ever, Bloomberg data show. Malvey said the last time he can recall that a corporate bond yield traded below Treasuries was when he was head of company debt research at Kidder Peabody & Co. in the mid-1980s.

While Treasuries are poised to make money for investors this quarter, they are losing momentum. The securities are down 0.43 percent in March after gaining 0.4 percent last month and 1.58 percent in January, Bank of America Merrill Lynch indexes show.

Deutsche Bank and Barclays Plc, two of the 18 primary dealers of U.S. government securities that are obligated to bid at the Treasury’s auctions, say balance sheets of high-rated companies make them more attractive than Treasuries.

Corporate borrowers are reducing debt at a record pace. Companies in the S&P 500 cut their liabilities by $282 billion to $7.1 trillion in the fourth quarter from the prior three months, Bloomberg data show. That represents 28 percent of assets, the least in at least a decade.

Investors are accepting smaller premiums to lend to companies, with yields on bonds rated at least AA falling to within 107 basis points of Treasuries on average, Bank of America Merrill Lynch indexes show. That’s down from the peak of 515 basis points in November 2008, and approaching the record low of 36 in 1997.

The last time there was talk of the U.S. losing its status as the world’s benchmark for bonds was in the late 1990s, when the government began amassing budget surpluses in 1998 for the first time in almost three decades. The amount of Treasuries outstanding dropped 8 percent to $3.4 trillion in 2000, the biggest annual decline since 1946.

Treasury supply resumed growing in 2001 after two rounds of tax cuts proposed by President George W. Bush led to deficits. Outstanding Treasury supply rose 53 percent to $4.5 trillion in 2007 from 2000 as the U.S. borrowed to finance tax cuts intended to revive a slumping economy. The amount has since risen 64 percent to $7.4 trillion. More is on the way. The U.S. will sell a record $2.43 trillion of debt in 2010, according to the average forecast of 10 of the 18 primary dealers in a Bloomberg survey. At the same time Treasury sales are rising, the cash position of the largest corporations is swelling. Companies in the S&P 500 held a record $2.3 trillion as of the fourth quarter, Bloomberg data show.

I want you to pay particular attention who is presenting this information to the public.  It is the same army of “experts” that I pointed out in my most recent previous article that is waging the war to bring governments to their knees in preparation for the argument of one world government, one central bank, and one world currency.  It is a lot closer than even most experts imagine.  For example, if you would have suggested in even 2007 that corporate bonds would bring lower return rates that Treasury bonds you would have been laughed out of town.  No one is laughing now except the bankers.

It is also interesting to note that corporations are LOWERING their debt to the lowest level since at least 2000 and I suspect a lot earlier than that date.  We will see at the end of the fiscal year just how significant that number becomes.

Now pay close attention, the billionaires in the US rose significantly during the last year in this economic crisis and the AVERAGE billionaire appreciated $500 million in asset growth in 2009 alone! And you wonder where your money went! Not only is your money and potential for earning and appreciating more income being taken from you, they are slapping us as citizens so far into debt we will never see the light, nor will our children, or our grandchildren, or their children.  Never mind, go back to sleep.

Here is Uncle Willie’s Thought for the day:

Time to Stop Pussy Footing…We Must All Decide

I have been writing this blog for nearly one year now. 76 articles have been published by me.  We have discussed a number of issues.  In each article I try to present just facts, not conjectures, anecdotes, or conspiracy theories.  The article concerning the underground cities seems to have been the only article that really struck a chord with some folks because it has been viewed over 400 times!  I have come to realize that while I have tried to report on the issues that I think we all need to be aware of and how MSM has avoided or under-reported these issues, I have never in one article stated exactly what I think and know is going on.  I have never put the whole picture in front of you to consider.

The other day, one of the warriors out there trying to get the “truth” out stimulated me to do this article.  For over ten years, Adrian Salbuchi from Argentina has been trying to get the world to listen and pay attention.  He is a patriot of mankind if there ever was such a champion.  He works tirelessly to expose the PTB and their agenda.  While many of us take a piece of the puzzle and talk about it, he has kept it all in focus.  I have for over 30 years been on this quest to “know” the truth.  It isn’t easy because the real truth is embedded in a ball of twine, but like a ball of twine, it is in the end one piece of string.  You just have to have the patience to unwind it. In fact, our whole existence, history, and future is a single string of events wrapped up like a ball of twine.  So here goes.

For at least 1,ooo years, maybe more, there has been knowledge about the events that are about to unfold within the next few years.  These events will transform life on this planet as we know it.  When this knowledge was fully realized by the educated elite of the time, it was decided that this knowledge should never be released and in fact, those that uncovered this knowledge would and could use it to “control” the whole of mankind.  In fact they could always be in control and power.  While it can be argued that the knowledge existed long before this time it truly was not acted on in an organized fashion until it came into the possession of the Roman Catholic Church as a result of discoveries made during the Crusades and at the time, the Roman Catholic Church was essentially at the head of all major powers in Europe.  Therefore a decision was made in the Vatican to withhold this information from the general public as this knowledge could undermine the entire authority of the church.  The only organized power structure outside of the church with this knowledge were the Knights Templar who had “discovered” the knowledge and faithfully brought it to Rome.  They were systematically terminated to insure the sole possessors and controllers of the knowledge would be the Vatican.

Over the years, through many kings and queens of various European countries and eventually to the new world, everything was done with the design to maintain this secrecy.  It became necessary to control commerce, politics, economies and finance.  Therefore control mechanisms were required outside of the Vatican to ensure the integrity of the secret.  The Illuminati, the higher orders of Masonry, bankers, and eventually to the modern times, the Bildebergers  MJ12 and Council on Foreign Relations were designed and controlled to execute the plans. This is basically the structure of the “shadow government”.

What are the plans?  Well in a nutshell, the geophysical events that will take place over the next 4-6 years will reduce the world population to around 2 billion or less and all institutions, systems of government and economy will be destroyed.  This is not conjecture unfortunately it is fact.  The PTB are moving to establish complete control PRIOR to these events so that they will emerge from the events still in full and complete control.  This now requires them to establish a single world government prior to the event horizon and that is exactly what is going on at this very moment.  This isn’t about globalization of economies anymore, this is about one world government.  All the events of the 20th century were lead ups to this time.  First was the consolidation to two world superpowers, then the elimination of one of them.  The Soviet Union fell without a shot fired.

Now however, the remaining superpower must go!  They cannot risk a real patriot emerging and exposing the one world government plan.  All of the events in the last 20 years are leading to the event when the US collapses thereby requiring the establishment of one world government.  Adrian points out very accurately the twelve steps to this goal.

Global Financial Collapse – This actually is being accomplished right before our eyes. the weapons in this war are things like derivatives and repos. It actually started in 2001, when the weapons were used for the first time against a sovereign economy and Argentina was brought to its knees.  The next targets were Iceland and Ireland and now the targets are Greece, Spain, Italy, Portugal to bring the EU down.  Then the US is next.  The army deployed by the PTB are CitiBank, Goldman Sachs, Barclays, Deutsche Bank, Bank of America, and various large hedge funds.  If you really look at this in this manner, the facts are truly undeniable. This isn’t going to happen, it is happening right now and right on schedule.  This is creating a  deepening economic crisis that will not enable any one government or individual to challenge the PTB.

This has already begun to create a growing social upheaval which will lead to a “reason” to have “domestic” armies controlling the populations in each country.  The evidence of this is already unfolding in China, Chile, Haiti, Greece, and to a lesser extend in every country.  One only has to look at how “police” forces are equipped today to realize this transition is well underway.  In the US, the formation of Northern Command and the FEMA camps are very real and they exist.  For what?

In order for the PTB to control the psyche of the world population, the majority of us globally must believe all of this is necessary for our well-being and safety so a number of events have and will be staged to keeps us compliant and accepting of this transition to world government with a single police force.  The war on “terror”, 9/11, Iraq, Afghanistan, and now Iran are ALL planned and staged events to get us mentally prepared to accept this total control.  At first when people began to see these events for what they are they were labeled conspiracy theorists, but most recently because of the internet and good science these charges are becoming more credible.  The evidence of thermite and nano-thermite at ground zero and the fact the fires burned there until December 20th is just now emerging into the mainstream of conciousness.  If in fact, our own government, or more precisely a shadow government was involved in these events, what do you think the public reaction as related to the faith in government will be?  Exactly, the elimination of the last superpower and that void is to be filled by a single world government.

The last two elements in the manipulation of our psyche is in the context of religion and security.  I believe, as Adrian does, that we are going to see more “mega terrorists” attacks, war in the middle east, an assassination of a key world figure on the level of scale to a John Kennedy and further beating up of “rogue states” such as Iran, North Korea, Venezuela, and Somalia.  This will lead to a “nuclear accident” which will then require a single world entity to take control of all nuclear facilities and weapons.  With this move there is no need to go house to house and collect handguns and shot guns.

Finally, the religious issue I believe is going to be handled by staging “virtual” and profound events.  Virtual events are like Building 7 going down on 9/11 even though it was not hit nor did any fires start in that building.  Here is where prophecy meets reality, but unfortunately the “reality” will be a staged event. So look for the return of Jesus Christ in your neighborhood soon. Just for good measure we will also see “alien contact”.  Again staged.  Do aliens exist?  Yes, however, there is no such term as alien.  Hundreds of thousands of civilizations exist in this galaxy and every other galaxy.  Many civilizations have been present on this planet since the beginning, but there are strict rules concerning the evolution of new civilizations and non-interference is truly a prime directive.  However, since at least 1935, these civilizations have been requesting that the PTB and leaders of the world prepare us for this transition that is about to occur and not ONE leader has had the moral fiber or courage to do so. Not one.

The good news is that in the end the PTB will fail in their plan.  Ironically, they already know this, but have elected to continue with the plan anyway.  OK so I have laid it out.  You can certify me totally crazy now or you can be a true patriot and prove me wrong by becoming more informed than me.  If I am right however, everything I just said will to continue to unfold. If it does I wonder when you wake up or will you choose to just lie there with your eyes closed hoping the big bad man goes away?  I wonder?

The Clowns and The Circus

The good Senator Dodd is trying to get his “banking regulatory” reform bill passed.  But do we really understand what is going on.  The answer is more of the same old game that got us in this mess in the first place.  The key element of this bill is that “the Fed” will be the regulatory oversight for the largest 40 banking institutions.  Let’s examine that just for a moment.  To do so let’s look at how well the Fed and for that matter the SEC and the Treasury department did in conducting oversight functions at Lehman Brothers.

The court examiner, Anton R. Valukas laid out what the report characterized as “materially misleading” accounting gimmicks that Lehman used to mask the perilous state of its finances. Lehman executives engaged in what the report characterized as “actionable balance sheet manipulation”.

A large portion of the [examiner’s] nine-volume report centers on the accounting maneuvers, known inside Lehman as “Repo 105″. First used in 2001, long before the crisis struck, Repo 105 involved transactions that secretly moved billions of dollars off Lehman’s books at a time when the bank was under heavy scrutiny.

In a legal case against Lehman Brothers, The examiner said in a report publicly released that senior officials failed to disclose key practices, opening them up to legal claims . The report concludes that the firm’s auditor, Ernst & Young, failed to meet “professional standards. The exhaustive report was unsealed by Judge James M. Peck, who said the report reads “like a best-seller.”

The examiner, Anton Valukas, also found that parties have claims to pursue against JPMorgan Chase and Citibank in connection with their behavior regarding the modification of agreements with Lehman and their increasing collateral demands in Lehman’s final days. These demands had a “direct impact” on Lehman’s diminishing liquidity — its cash on hand — which was a prime reason behind the firm’s demise.

The examiner’s report notes:

The business decisions that brought Lehman to its crisis of confidence may have been in error but were largely within the business judgment rule. But the decision not to disclose the effects of those judgments does give rise to colorable claims [i.e. valid legal claims] against the senior officers who oversaw and certified misleading financial statements — Lehman’s CEO Richard S. Fuld, Jr., and its CFOs Christopher O’Meara, Erin M. Callan and Ian T. Lowitt.

There are colorable claims against Lehman’s external auditor Ernst & Young for, among other things, its failure to question and challenge improper or inadequate disclosures in those financial statements. The examiner notes that the issue giving rise to these potential claims was Lehman’s creative use of repurchase agreements, otherwise known as repo. These are agreements between financial firms that essentially act as loans for cash — one firm pledges collateral to another in exchange for cash with a promise that they’ll buy back that collateral.

The examiner said the sole function of Lehman’s use of repo was “balance sheet manipulation,” according to the report. Although Repo 105 transactions may not have been inherently improper, there is a colorable claim that their sole function as employed by Lehman was balance sheet manipulation. Lehman’s own accounting personnel described Repo 105 transactions as an “accounting gimmick” and a “lazy way of managing the balance sheet as opposed to legitimately meeting balance sheet targets at quarter end.” Lehman used Repo 105 to reduce balance sheet at the quarter‐end. The reason for that, the report notes, was to lower Lehman’s leverage — a critical component of the firm’s credit rating.

In May 2008, a Lehman Senior Vice President, Matthew Lee, wrote a letter to management alleging accounting improprieties; in the course of investigating the allegations, Ernst & Young was advised by Lee on June 12, 2008 that Lehman used $50 billion of Repo 105 transactions to temporarily move assets off balance sheet at quarter end.

The next day ‐- on June 13, 2008 ‐- Ernst & Young met with the Lehman Board Audit Committee but did not advise it about Lee’s assertions, despite an express direction from the Committee to advise on all allegations raised by Lee. Ernst & Young took virtually no action to investigate the Repo 105 allegations. Ernst & Young took no steps to question or challenge the non‐disclosure by Lehman of its use of $50 billion of temporary, off‐balance sheet transactions.

For example, when the examiner questioned Lehman executives and other witnesses about Lehman’s financial health and reporting, a recurrent theme in their responses was that Lehman gave full and complete financial information to Government agencies, and that the Government never raised significant objections or directed that Lehman take any corrective action.

True? Let’s see what the examiner had to say: “although various Government agencies had information that raised serious questions about Lehman’s reported liquidity and about the sufficiency of its capital and liquidity to withstand stress scenarios, the agencies generally limited their activities to collecting data and monitoring.”

After March 2008 when the SEC and FRBNY began onsite daily monitoring of Lehman, the SEC deferred to the FRBNY to devise more rigorous stress-testing scenarios to test Lehman’s ability to withstand a run or potential run on the bank. The FRBNY developed two new stress scenarios: “Bear Stearns” and “Bear Stearns Light.” Lehman failed both tests. The FRBNY then developed a new set of assumptions for an additional round of stress tests, which Lehman also failed. However, Lehman ran stress tests of its own, modeled on similar assumptions, and passed. It does not appear that any agency required any action of Lehman in response to the results of the stress testing.

So let’s see what we got here. They ran two sets of stress tests and the firm failed both. Not satisfied with the results they then designed a third set, which the firm also failed (we can reasonably presume the third had less stringent requirements than the other two!)

Instead of applying any of these three, FRBNY, which was run by TIMOTHY GEITHNER, NOW OUR TREASURY SECRETARY, WHO REPORTED TO BEN BERNANKE, instead took Lehman’s word that all was ok and did nothing.

Further, The SEC inspection revealed significant problems at Lehman. The SEC found that Lehman’s Price Valuation Group was understaffed; and it found that Lehman’s asset pricing function was overly “process driven.” But the SEC did not release its findings or formally present them to Lehman prior to Lehman’s demise.

Now this last week, Ben Bernanke testifies before the senate to raise support for the Fed being the regulatory agency over big banks and he says the following:

On the regulatory side, we have played a key role in international efforts to ensure that systemically critical financial institutions hold more and higher-quality capital, have enough liquidity to survive highly stressed conditions, and meet demanding standards for company-wide risk management. We have also been taking the lead in addressing flawed compensation practices by issuing proposed guidance to help ensure that compensation structures at banking organizations provide appropriate incentives without encouraging excessive risk-taking.6 Less formally, but equally important, since 2005 the Federal Reserve has been leading cooperative efforts by market participants and regulators to strengthen the infrastructure of a number of key markets, including the market for securities repurchase agreements and the markets for credit derivatives and other over-the-counter derivative instruments.

To improve both our consolidated supervision and our ability to identify potential risks to the financial system, we have made substantial changes to our supervisory framework. So that we can better understand linkages among firms and markets that have the potential to undermine the stability of the financial system, we have adopted a more explicitly multidisciplinary approach, making use of the Federal Reserve’s broad expertise in economics, financial markets, payment systems, and bank supervision to which I alluded earlier. We are also augmenting our traditional supervisory approach that focuses on firm-by-firm examinations with greater use of horizontal reviews that look across a group of firms to identify common sources of risks and best practices for managing those risks. To supplement information from examiners in the field, we are developing an off-site, enhanced quantitative surveillance program for large bank holding companies that will use data analysis and formal modeling to help identify vulnerabilities at both the firm level and for the financial sector as a whole. This analysis will be supported by the collection of more timely, detailed, and consistent data from regulated firms.

Many of these changes draw on the successful experience of the Supervisory Capital Assessment Program (SCAP), also known as the banking stress test, which the Federal Reserve led last year. As in the SCAP, representatives of primary and functional supervisors will be fully integrated in the process, participating in the planning and execution of horizontal exams and consolidated supervisory activities.

Improvements in the supervisory framework will lead to better outcomes only if day-to-day supervision is well executed, with risks identified early and promptly remediated. Our internal reviews have identified a number of directions for improvement. In the future, to facilitate swifter, more-effective supervisory responses, the oversight and control of our supervisory function will be more centralized, with shared accountability by senior Board and Reserve Bank supervisory staff and active oversight by the Board of Governors. Supervisory concerns will be communicated to firms promptly and at a high level, with more-frequent involvement of senior bank managers and boards of directors and senior Federal Reserve officials. Greater involvement of senior Federal Reserve officials and strong, systematic follow-through will facilitate more vigorous remediation by firms. Where necessary, we will increase the use of formal and informal enforcement actions to ensure prompt and effective remediation of serious issues.”

When you understand what really has gone on.  When you realize in real terms nothing has changed.  When you realize the fox is guarding the hen house.  Then and only then you can see how “rigged: the whole situation is and that this so called regulatory reform bill is a total shame. It is like threatening the banking industry with a severe lashing with a wet noodle! OOOOHHHHH!

But Senator Dodd, Bernanke, Geithner et al are counting on two things.  One, we are totally ignorant and won’t understand anything and secondly, the CONgress is bought and paid for, lock stock and barrel!  Some of the Republican harlots are even protesting this shame of a regulation as too much!!!

How bold I say is guilt! How insulting to our intelligence. I remember the lines from the Moody Blues.  “It riles them to believe you perceive the web they weave.” We need real reform. What we don’t need is a PRIVATE CORPORATION, the Fed, acting as a regulatory agency.  Think about this just for a moment.  Where in the constitution or the history of the republic have we allowed a private corporation to regulate other corporations?  We need a real governmental agency that has at its core a responsibility to insure the safety and security of the investment public.  This is the only way to restore the confidence to be investors and consumers again.  This is the real engine to get the economy off of dead bottom.

A Blast from the Past and a Swift Kick in the Butt

President Eisenhower’s Farewell Radio and Television Address to the American People, January 17, 1961, contained some almost prophetic wisdom that so aptly applies to our current situation today.  So much so, that I want to share it with my readers so we once again remember that the health of our nation and economy is all our responsibilities.  That we are all empowered and required to do our part to insure the health of our nation and to protect its legacy for our children and grandchildren.  Here then are some of the excerpts from that address which most significantly apply to today. I have taken the liberty to add my emphasis points.

“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”

“We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together. “

“In this revolution, research has become central; it also becomes more formalized, complex, and costly. A steadily increasing share is conducted for, by, or at the direction of, the Federal government.”

“Today, the solitary inventor, tinkering in his shop, has been overshadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers (editor’s note: realize here he made this speech in 1961,PCs were still 20 years away!).”

“The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present–and is gravely to be regarded. Yet, in holding scientific research and discovery in respect, as we should, we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite.”

“It is the task of statesmanship to mold, to balance, and to integrate these and other forces, new and old, within the principles of our democratic system–ever aiming toward the supreme goals of our free society.”

“Another factor in maintaining balance involves the element of time. As we peer into society’s future, we–you and I, and our government-must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.”

Together we must learn how to compose differences, not with arms, but with intellect and decent purpose. Because this need is so sharp and apparent I confess that I lay down my official responsibilities in this field with a definite sense of disappointment. As one who has witnessed the horror and the lingering sadness of war–as one who knows that another war could utterly destroy this civilization which has been so slowly and painfully built over thousands of years–I wish I could say tonight that a lasting peace is in sight.”

“To all the peoples of the world, I once more give expression to America’s prayerful and continuing aspiration:

We pray that peoples of all faiths, all races, all nations, may have their great human needs satisfied; that those now denied opportunity shall come to enjoy it to the full; that all who yearn for freedom may experience its spiritual blessings; that those who have freedom will understand, also, its heavy responsibilities; that all who are insensitive to the needs of others will learn charity; that the scourges of poverty, disease and ignorance will be made to disappear from the earth, and that, in the goodness of time, all peoples will come to live together in a peace guaranteed by the binding force of mutual respect and love.”

I cannot think of more insightful words than these to rededicate ourselves to the tasks at hand.  I was a child when Eisenhower ran for president.  One of his campaign slogans was “I like Ike”.  After re-reading these words I can say I like Ike. What’s more is through halls of history his voice rings loudly now in my ears.  It both challenges me and empowers me to act.  I do so through this blog.  What are you doing?  I mean doing.  Words are meaningless unless we take action. If not us who? When we lack leadership, we must step up to lead ourselves. We have come to this point where we so complacently resign ourselves to the fact that our congress does not represent our interest.  Not only is that pathetic, it is unacceptable.  The “tea baggers” have it right about acting, but have it all wrong that this is a conservative versus liberal issue or that it is Republican versus Democratic issue.  It is an issue of the state of our union.  It is sick and we must all together heal it.  We do that by not pointing out our differences, but by examining the system and fixing what is wrong. Our system has been usurped by bankers and major corporate interests.  It is time to balance the scales of government in all three branches of government so that it serves the interests of all peoples in a fair and balanced manner.  This is the urgent task before us all at this moment.  Failure to act may just signal the fall of the greatest experiment in freedom the world has ever seen and it may be many centuries before a similar opportunity arises.

Here is Uncle Willie’s Thought for the Day:

Ignorance is a Prison Without Walls, Bondage Without Chains

When we look at any country where the people live as victims, where corrupt governments dominate their populations, there also is ignorance.  People without education, illiterate and uninformed, living lives of poverty and bondage.  We need only to look at some African nations or eastern nations such as Bangladesh to understand this is true.  A strong education system is a hallmark of nations with the highest living standards.  Nations with the most opportunities and with the brightest futures, such as Sweden, Norway, etc., seem to be somewhat immune to the global financial crisis.

The recent financial crisis, which in my mind is a total manipulated situation, has hit America in many ways, but no more so than crippling our education system.  If we cannot be outraged by having our savings ripped away or the values of our homes hit by 30-40%, or seeing our incomes contract, surely we can become outraged at what is happening to our system of education.  In 2010, only 75% of our high school children will graduate!  We are going backwards at a tremendous rate.

In 1986 the US was ranked no 1 in the world for secondary education.  By 2006 we were ninth. By November of last year The Organization for Economic Cooperation and Development places the United States 18th among the 36 nations examined, USA Today reported.

Headed to the top of the heap is South Korea where 93 percent of high school students graduate on time compared with the United States where 75 percent receive their diplomas.  The seemingly downward trend of U.S. education worries economists. “The United States has rested on its laurels way too long,”  said Jacob Funk Kirkegaard of the Peterson Institute for International Economics in Washington. “Other countries have increasingly caught up and surpassed the United States.”

March 5, 2010 -As many as ten thousand students, parents, school faculty and union members took to the streets of San Francisco yesterday as part of a coordinated day of action to protest cuts to education. Dubbed “The Strike and Day of Action to Defend Public Education,” the largely peaceful statewide rallies were held to protest severe cuts to education resulting in thousands of teacher layoffs, class and course terminations, higher student fees and increased class sizes. Demonstrators used picket signs, bullhorns, drums and sang slogans to get their collective message across: “We’re mad as hell and we’re not taking it anymore.” Facing a $20 billion State budget shortfall, public education in California is being decimated by severe cuts impacting all levels of education in many districts and school systems, including San Francisco K-12 schools, CCSF and SFSU.

Teachers, many now vacuuming their own classrooms, have been told to do away with space heaters and office refrigerators because they consume expensive electricity. Even the school year is being shortened as districts across the nation are making hard choices amid a worsening recession as they deal with budget woes.

“If school districts think it’s bad now, it’s likely to get worse in the next couple of years,” said Michael Petrilli, vice president of programs and policy at the Thomas B. Fordham Foundation in Washington, who paints a grim portrait of the economy’s influence on education. He noted that as local revenues from property taxes continue to plummet, many districts likely will lose even more funding as foreclosures mount with increasing job losses. Even as some hope that the economic stimulus will bring some relief, he said, children are the ones who ultimately lose as education bears a big hit from the downturn.

The truth of this is that this crisis has taken the focus away from educational improvements and raising achievement and put the focus on simply battening down the hatches and trying to make it through.

In Florida’s Broward County, the school board, facing $160 million in budget cuts, this week debated killing several middle and high school sports programs, based on participation rates. In adjoining Dade County, two mothers outraged over state budget cuts went on a seven-day hunger strike, camping out across from Ronald Reagan Doral High School in January to protest that school system’s loss of music and art programs and curbs on student elective courses.

Pontiac, Mich., school district employees could all face layoffs as early as April. The struggling city must react to shrinking enrollment – from 20,000 to about 7,000 – and loss of state funding along with a citywide financial emergency declared by Gov. Jennifer M. Granholm, a Democrat, amidst a $12 million deficit.

In Kansas, districts are pitching in to help cut budget shortfalls by instituting hiring freezes, limiting travel, charging for all-day kindergarten programs and monitoring energy use from computers and lights while adjusting school thermostats.  Kansas City is closing nearly half of all of its schools.

In Kentucky and Florida, school parent-teacher groups have considered pitching in more money to allow the schools to keep teacher aides in classrooms and to purchase equipment such as new computers. As money problems rise, districts across the nation have increasingly relied on these parent groups for more support. One principal in the beleaguered Detroit school district drew national attention after she called on parents to donate light bulbs and toilet paper to get them through the school year.

In Ohio, students from the Richmond Heights district may be the first in their state to eliminate all sports – even the money-making football and basketball – as they work against a more than quarter-million-dollar deficit. They join districts in Arizona and elsewhere that have considered eliminating sports as a quick way to shave money in a tight economy. The Richmond Heights educators already have eliminated the bands. They are considering limiting bus routes, picking up only students through the eighth grade who live farther than two miles from school.

California schools, caught in a massive state budget mess, may cut their school year by five days. In Oregon, the school year could be cut by nearly two weeks. The California move would save the state an estimated $1.1 billion. Gov. Arnold Schwarzenegger, a Republican, has criticized the cuts, which prompted some outraged parents to point out that he sends his children to private schools.

A School Nutrition Association survey of 130 school nutrition directors from 38 states found that 79 percent of districts showed a rise in free lunches served. The number of students who paid full price for school lunches fell by 48 percent, the association said, noting that the uptick in demand reflected the increasingly dire economic problems facing U.S. families.

Illinois’ governor wants to raise state income taxes by 1 percent to continue funding schools and prevent the layoffs of thousands of teachers. Hawaii, President Barack Obama’s home state, has whacked 17 days from the school year and says it’s not done with educational cost-cutting.

From Maine to Wisconsin, Florida to California, school districts across the country are taking drastic measures to deal with school budget cuts made severe by the recession and its aftermath. Msnbc.com asked readers how their school district is coping, and one clear lesson emerged — cuts in education make no one happy.

Heather Baker, of Wetumpka, Ala., says her 12-year-old daughter’s middle school is in a county that is prorationing — cutting programs or jobs when revenues fall short of expectations — for the third year in a row. Every week is a new fund-raiser and funding is so low that the teachers are paying for all supplies out-of-pocket. Parents are also responsible for sending supplies for the classroom. This is a public school!” she wrote. “There’s rarely any toilet paper in the bathrooms, nor are they provided soap in the restrooms. Instead they are instructed to NOT wash their hands and to ONLY use a squirt of antibacterial hand sanitizer.”

Worst is yet to come
And things are likely get worse in the coming school year. Kim Anderson, director of government relations for the National Education Association, the nation’s largest teachers union, said the first round of federal stimulus money that kept many school jobs afloat is drying up at a time when state legislatures are preparing budgets for next year and school districts have to issue layoff notices. Without more federal money such as that contained in the jobs-creation bill just passed by the House, districts are proceeding with worst-case scenarios based on massive teacher and staff layoffs, and in some cases, school closures.

Anne Bryant, executive director of the National School Boards Association, agreed that the most dire cuts are likely to be felt when the new school year begins next fall. “There is no silver lining, at least in the next 18 months,” she said. “School districts are looking at four-day work weeks, cutting back on non-core subjects like music and art and PE, looking to raise class size. Those are the kinds of things boards are looking at to balance their budgets,” Anderson added. The hard decisions take their toll on teachers, administrators, students and parents alike. These events are affecting EVERY school district in the country.  Here is some anecdotal information from all over the country.

Waiting in line
We live in Greenville, S.C. Recently Greenville County has mentioned a furlough for teachers. Teachers that are currently overworked and underpaid. As for school year 2010-2011, instead of purchasing new buses and hiring new bus drivers for our ever-expanding county, our county board has changed the middle school and high school (only) start and end times. I will now have to wait after school in the middle school car line 40 minutes with my elementary school child in the car. — Elizabeth Dickson, Piedmont, S.C.

Hiring freeze
I’m frustrated because I am a school district employee. Our wages are frozen, there is a hiring freeze in place, and our health insurance costs jumped 15 percent and cover less. That being said, our district spends money like it is going out of style. We spent $700,000 on a new track at the high school that is used for two-track meets a year. We are spending $50,000 on a media computer lab but have no teacher or class that will be using it. We created (even though there is a hiring freeze) a teaching job so the football coach could draw teacher pay. I’m willing to bet other school districts have similar stories. What we need is proper management, not additional funding. — Anonymous, Laramie, Wyo.

Explain that to an 8-year-old
Fort Wayne Community Schools is $15 million short. Our son’s elementary school is one of two buildings being closed in the system. While I see the need to save money, I also know the emotional impact. It’s been hard to explain why it’s happening to a second-grader and what it means for the friends that he’s made over the past few years. That will also mean that teachers, who don’t make a lot of money to begin with, are going to be let go. That also is tough to explain to an 8-year-old. — Jeremy Lawrence, Fort Wayne, Ind.


Shorter school year
Our school, USD 429, Troy, KS, started this school year by cutting nearly 15 days off the school year. Instead of starting around Aug. 12, classes started Sept. 2. This eliminated the costs associated with air conditioning and buses for those days. “Now we are being told we must cut more, which may require consolidation with at least three other schools. Elementary kids already may ride the bus for over an hour, one way. Consolidation could give these kids two-hour rides, each way. — Anonymous, Troy, Kan.

Arizona parents and teachers are spending more out of their own pockets to help keep public schools running smoothly as schools hike fees and scrimp on basic supplies to meet tighter budgets. Fees for band, athletics and other activities are going up at many schools. The amount of paper, markers, tissues, crayons and paper towels that schools supply for classes is falling, forcing teachers or parents to make up the difference. Yet schools view the cost-shifting as necessary. Districts already are raising class sizes and slicing payrolls. Among school districts making such moves:
• The Paradise Valley Unified District is nearly doubling parking fees to $180 a year, up from $100, and athletic fees jumped to $200 per sport, up $50 over last year. Middle-school athletic fees also rose. Teachers and staff are taking a 2.6 percent pay cut, and each school must cut 16.7 percent in operating expenses, including supplies.
• Activity fees will remain the same at the Tempe Union High School District, but teacher pay is frozen and schools will make 6.3 percent cuts in operating budgets.
• Deer Valley Unified’s school-supply budgets were cut by 5 percent.
• Mesa Unified is cutting classroom supplies by 15 percent. The district doesn’t charge athletic fees, and other student fees, such as parking, will not rise.
• The Glendale Union High School District is considering charging its first athletic fees in nearly 20 years. It cut classroom supplies by 20 percent.
• Each Peoria Unified school must cut its operating budget, which includes supplies, by 10 percent. Many schools also want more volunteer time from parents, and parent-teacher groups are trying new ways to raise funds. Coyote Trail Elementary School in Tucson faced a supplies crunch last spring with months left in the semester.

Teacher commitment

Teachers spend an average of $477 a year for supplies that schools can’t afford, according to a 2006 survey by the National Education Association. They can deduct up to $250 of those expenses from their federal taxable income.  People who go into the profession know this personal subsidy is part of the job, but they also know it’s not required in many other professions. The amounts teachers pay for supplies often reflect not only a shortage of funding by the district or state; they reflect teachers’ commitment to reach for higher-quality instruction – better materials, teaching aids, even books for their kids.

In Oregon, Twenty-five school days, 380 jobs. That’s the stark picture of what upcoming state funding reductions could mean for parents, teachers and students in Portland Public Schools. The district probably won’t solve its 2009-10 budget problems solely through layoffs or a shortened school year. But Wednesday night, district leaders told school board members that no amount of reserves or central office cuts will protect the classroom.

“We approached the budget initially with the thought that we are weathering a recession, making reductions that we’re going to build back,” said Superintendent Carole Smith. “If we’re in a recession at the $5.4 billion level, we’re faced with some very different decisions.”  Smith built her budget in March assuming Oregon schools would receive $6.4 billion over the next two years. That budget included $14.5 million in cuts for the Portland district.

Now, state leaders say, Oregon schools are more likely to receive between $5.4 billion and $5.9 billion. That means Portland, the state’s largest school district, could face an additional $18 million to $38 million shortfall. Sen. Margaret Carter, D-Portland, co-chairwoman of the legislative Joint Ways and Means Committee, recorded a video message for Smith and school board members, telling them to expect a statewide budget of about $5.9 billion. In Portland, a $5.9 billion statewide budget would equal the loss of about 25 school days or 380 jobs. A $5.4 billion statewide budget would equal about 40 days, 598 jobs or a reduction in the operating budget by about 12 percent.

These are real life facts spread across the entire country.  This is nothing short of perverse.  Even in the last great depression, our system of education continued to grow and expand. In any financial crisis, we collectively have to make choices.  Education MUST be that first choice, period. On a federal level, it is criminal to be spending what we are on defense or banking bailouts when we are watching our school systems implode.  On the state levels, we should have educational budgets in a “finance first” basis when balancing the budgets.  Again, this is an issue for us as voters being truly informed and demanding the appropriate response from legislators.  This is NOT about shrinking tax revenues as they would have us believe.  It is about priorities period.